"What we're seeing is especially youngish people who are willing to rent, it's not a big problem. Prices are exorbitant, they're not unaffordable. It's when you come to buy, if you're not a buyer, the amount of money you need is really, outside of banking, it's really very unusual for people to have that kind of funds."

The government is trying to help those struggling to find large mortgage deposits with a 'Help to Buy' scheme.

But there are concerns it might create a bubble.

Now Finance Minister George Osborne says the Bank of England should intervene, if it looks as though prices are entering bubble territory.

"It's absolutely the right thing to do. I think the Bank of England have got to keep a close eye on it. They're aware of some of the risks they're taking anyway with QE and low interest rates so the last thing they will want, especially in the early parts of Carney's tenure, is for anything like a bubble to be developing."

Bank of England Governor Mark Carney says that while housing is seeing a turnaround - levels of activity remain at around two-thirds of longer term averages.